Making an Affordable Mortgage Product Easier to Use, Available to More Homebuyers
Fannie Mae launched HomeReady® mortgage last year to help low- to moderate-income borrowers who want to buy homes but have difficulty saving for a 10 to 20 percent down payment. With HomeReady, these borrowers can put as little as 3 percent down, and “nontraditional” income, such as income from a rental unit, can be considered by the lender when underwriting the loan.
HomeReady has already been used by Fannie Mae lenders to help thousands of families.
But we knew could do better.
So we asked our lenders for feedback. And what we learned was pretty simple. Regulatory changes have complicated their business enough. They did not need or want any more complexity. And, some told us that HomeReady, especially the income requirements that differentiated allowable income by census tract (some as low as 80 percent of area median income or AMI), was too complicated.
It became our mission to win them over.